Tesla suspends Bitcoin payment for the “increasing use of fossil fuel”

Elon Musk tweeted Tesla’s concerns this morning, regarding the “rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal.” The price of Bitcoin dropped 16% from $54700 to $46000 in 3 hours.

In the tweet, Tesla noted the environment should not pay the cost for the increasing fossil fuel usage, even cryptocurrency had a “promising future”. Therefore, the company would seek for another crypto which uses less than 1% of Bitcoin’s energy, while Tesla promised that they would not sell Bitcoin.

Responding to Tesla, either Microstrategy CEO Michael Saylor or prominent crypto analyst Anthony Pompliano criticised the decision. “Elon…You realize that 75% of miners use renewable energy, right? This energy story has been debunked over and over again.” said Anthony.

In 22 April, Bitcoin Magazine republished Hass McCook’s “Comparing Bitcoin’s Environmental Impact…,” In the blog, it mentioned that the tonnes of Co2 produced by Bitcoin was less than half of what the gold mining industry does, and less than one fifth of what Bank branches and ATMs do. Hence, if TResla suspended Bitcoin payment based on environmental concerns, they should probably ban accepting fiat money first.

In addition, Bitcoin firms started focusing on the sustainability of the entire ecosystem by launching clean energy mining, for instance, Seetee As, Dmg Blockchain Solutions and Argo Blockchain.

TideBit is a leading crypto asset exchange supporting fiat currency.